Oil Ministry To NINA: Iraq Will Not Be Affected Negatively By OPEC’s Decision To Reduce Production

BAGHDAD / The oil ministry said that Iraq will not be affected negatively by the decision taken by Organization of Petroleum Exporting Countries / OPEC / to reduce Iraq's production quantity of 200,000 barrels per day to 4.351 million barrels a day starting from next January. Confirming that the reduction of production to countries of / OPEC / for the first time in eight years is a positive decision will reflect on all oil-producing countries to support oil prices.

The spokesman of the Oil Ministry, Assem Jihad told the National Iraqi News Agency / that "Iraq will deal with the decision wisely so as not to impact on revenue and on the ministry's current and future plans." noting: "The decision to reduce Iraq's production by 200,000 barrels per day is a temporary decision from / OPEC / and is not a permanent decision. "

Jihad said that "all oil exporting countries inside and outside OPEC participated in the decision to reduce oil production, for the first time the main producers agree to cut production, in addition to Russia from outside the organization, to reduce production up to 300,000 barrels per day."

He added it is a step to address the global crisis facing the producing countries inside and outside the organization, which is the problem of low oil prices in the international oil market," adding that "the decision was "mandatory" for all.

He continued that "The decision will help support oil prices, and raising prices will reflect positively on the producing countries, including Iraq, therefore Iraq would be benefited by the rise in oil prices to levels excess / 50 / dollars or more," adding:" This decision for a period of 6 months, during which the cartel will monitor the impact of the decision on oil prices. "

The decision reached by OPEC, on Wednesday, to reduce the volume of oil production start in January 1, 2017, an average of 1.2 million barrels per day in order to reach 32.5 million barrels.

The resolution calls for the producing countries outside OPEC to reduce the size of its oil production at a rate of 600 thousand barrels per day, while Russia agreed to reduce this size at a rate of 300 thousand barrels per day.